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some people as saying we are now witnessing the collapse of president obama's mideast policy. >> june 2009. president obama is coming to the middle east. is going to egypt. >> is trying to appease. it was happening. in the last election, 2008 the jewish vote in the united states when 78 percent president obama. >> if you ask me about the policy of president obama regarding is relevant to you president obama was not a friend of israel. stuart: that is where i have to hand it. dagen and, carry it forward. charles: you'll be interested, we have a big story that just came in. sports related. dagen: everyone listen to this breaking news. you will want to hear it. the owners of the boston red sox have begun quietly shopping the team and are mulling a potential sale of the story baseball franchise. charles: well, charlie gasparino is the one breaking business.
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he joins us on the telephone with some details. >> reporter: well, full disclosure, this is coming from a yankee fan. [laughter] taken for what it's worth. people with direct knowledge of the situation, here's what we know. the boston red sox management is quietly shopping the franchise. they have had an internal discussion about selling the boston red sox. they have talked to at least one person i know about the potential sale of the price tag of around $1 billion. now, this doesn't mean they're going to do it, but we do know there quietly shopping. why is it? that finley baseball group which owns the boston red sox, it's run by several people. basically saying this. it's very hard to own the boston red sox and own the liverpool soccer team which they also on which takes a lot of capital to keep going.
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a guy named john henry which is the principal owner of the finley group also owns a commodities firm. we should point out that his commodities firm right now is not doing very well. there's a lot of financial pressures mounting on the family group. and so we understand there are talking to potential suitors. these are very early stage discussions. i want to preface, i'm not saying it's going to happen. we should also point out that the boston red sox have denied that they're doing this. there publicly denied it. i believe that publicly denied it today in a separate interview , radio interview. the publicly denied its eyes. i do know that internally, from sources with direct knowledge of the matter, there are mulling it, talking about it. they have tarts with a potential buyer. the price tag that they're looking at is $1 billion. what form says said, it's worth right around a billion.
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henry in the finley group competing financial interests. that liverpool soccer team. and almost nothing and of soccer, but qaeda briefed on it today. it isn't cheap. he bought for $400 million back in 2010. he's in it. obviously the red sox are a storied franchise, doing lousy this year. he's been under a lot of pressure. a lot of players, they're basically, to mutter and $50 million for the sellers recently. so the size of there. we do know, pick your retribution. is pretty tight their least talking about a potential sale of. charles: to ask you one question why pick the red sox as the team you're going to sell here from a business perspective? we will be talking about the red sox are struggling.
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selling off these players, but over in england henry gets criticized. >> reporter: it's kind of of a mirror image. listen, i can't -- for all i know he's trying to sell both. logically, can you really sell that liverpool franchise right now? that is not -- on unexpressed soccer, but that is not the big players out there. two teams. there's another team that is a better franchise. can you really sell the right now? can resell the liverpool team which is to upgrade players, and it's a new stadium. there are a lot of issues. boston, as you know, a very attractive franchise. does that mean he ultimately does it? don't know. but there are denying it. i do know, they are mulling it. the reasons why, all that i've mentioned. liverpool and his own financial
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difficulties with the foot commodities firm which posted performance publicly on its website and is not doing too well. dagen: really correct, can you talk about who you think or you know could potentially by this? >> reporter: well, god. i can't give you my source. listen. it's somebody, i believe, that is in the sports business that navy already has a foothold in the business. there are still allowed billionaires out there, people who like to own sports teams and they're into that. you would think maybe in boston, all of the above. clearly somebody, you can run that team without deep pockets.
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it. charles: very expensive. you get drawn up for a second by the sirens. >> reporter: m outside, stock soaring. charles: thank you very much. more throughout the day. >> reporter: we have a full ride up. dagen: thank you. i know the worst part of 50 years for liverpool. the worst record in 20 years for the red sox. charles: a bit of a circus up there. it. dagen: the story in also, of course, stocks. reduced tax the rich 15 minutes. nicole petallides has everything covered at the new york stock exchange looking apple. >> reporter: a hot stock to watch. the launch of the iphone five. it's got to be on sale september 201st. reorders are available. it's up over $7, did not break the 680 mark, at least not
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today. trading as high as 63. also, look at the broader market ahead of the fed. we can see the dow was up 1/4 of 1%. charles: nicole, the big news now. the middle east demonstrations continue. the u.s. embassies, egypt and yemen. the day after the u.s. ambassador was killed in benghazi. mike baker joins us, former covert operations officer with the cia, head of diligence to moguls to carry from. let me start with a question, if i can, about security. some people have brought up the fact, was there as much security as they needed to be at some of these indices from what you've seen of the last couple of days to make >> again, hindsight, it's terrific. it would have been wise to have beefed up security. in all honesty in libya where we know associates are operating,
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where there are tremendous amounts of hardware, weaponry on the streets so from the revolution when they are resort opened up and pilfered. just a general operating in firming, still trying to form a government. they should have been significantly more security on the ground. at this point after such a sad event, you know, you have to review, look. we have to prevent this in the future. charles: the sow will be talking about. after we talk about the response to want to get to as low. your other area of expertise to my intelligence and what we should have known about this, of talk about this anti muslim movie that has been made and whether or not that's the spark or some of these attacks particularly in libya planned in advance and to coincide with 9/11. after looking at the situation the last couple days which say about that?
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>> and just not buying this anti muslim film has parking this instantaneous average. these things tend to be when you see something developed usually the players or players underneath have coordinated to some degree, this has a top cover. and and just kind of tired of the outrage over anything. this particular video has been out there for awhile. charles: all to stop for one second. the pictures you're looking at our live. this is cairo, egypt right now, i believe right outside the u.s. embassy. right outside the u.s. embassy with a camera is position shooting toward the embassy. you can see some of the smoke that has developed. the situation obviously is still breaking. protesters are still on hand. we have reports earlier today in yemen. this is in cairo, not exactly sure what we just witnessed.
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some of the cars out there, people leaving the scene. cystic. >> five on our priorities, says all this is still so fluid. >> well, there is a lot of emotion. you have to -- it's one thing to be highly upset about this and to have a knee-jerk reaction. the reality is we need to have a measured approach. so the state department and the administration, the trying to do that. there -- there has been an awful lot of pandering, and some of that allows for this to escalate at times. detectives not to be a hard response from the administration i would like to see something a little more definitive from the administration over this as opposed to just sort of the pandering over, were said about this. obviously there sad about the debts of the way things are developing. you talk about the arabs spring and early days, were talking
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about the potential for chaos. we didn't know the players. you know, a lot of the was shouted down by people who talk about the magic of the arab spring and self-determination. the truth is, the jury is out. we don't know how this will shake out across the region. will this be a good thing from the u.s. perspective and our allies perspective are we looking at the extended time, jarmo -- turmoil. a security is denigrated. charles: you see those pictures. racine some of the protesters disperse a little bit after smoke had developed. we think mike baker for joining us today. charles: we want to bring in to be editor of the "wall street journal" editorial page. this is a more troubling area of the world that we need to worry about, not to diminish the death of the ambassador and libya and the three others there, and not to diminish what's going on with our relationship with his role.
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why you find this area of the world so troubling? help president obama has handled everything that happened since the arabs for a. >> well, we all know the middle east as a source of continuing trouble. what i think, it's politically interesting about what happened in the last date, both barack obama end mitt romney did not want to have to deal with something like this. barack obama has been trying to keep the world at arm's length for months. we have been watching syria go up in flames for months and months. the obama administration this tried not to become involved. one of the push all of this past the november elections. dagen: no mention of foreign policy. >> no mention of foreign policy in his acceptance speech because his campaign strategy is to focus is entirely on the weak economy and hope that six barack obama. 9/11 comes along.
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charles: that's a really interesting political point. people just sitting in these pictures at the embassy in cairo are coming see live. those are the protesters that are on hand. as he talked to democrats, that will make the case as the debt at the convention that they have the upper end of foreign-policy. certainly in recent memory you're more talked about foreign policy that you had, and not as much at a republican convention. do not think that argument holds true that the democrats have the upper hand. >> i don't think it necessarily have the upper hand. falls to mitt romney. certainly entitled to criticize president obama because of these events which show the world will michael way. the question is whether mitt romney will expand his critique of the events in libya and carrots to a broader criticism over foreign policy, basically pentium. the idea that we with our partners in your personal going to make them pull back from a
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nuclear plant which is completely failed. yet china and japan doing saber rattling in the south china sea which is very troubling. on the other hand, if i were the obama campaign and mitt romney was criticizing me i would say exactly that. you people have -- mitt romney has been speaking about platitudes and while the president is trying to make our decision. dagen: as our leader and not a candidate what is the administration, what does president obama need to do to stop this unraveling? you mentioned japan versus china. you mentioned is reverses are wrong. what does the white house me to do right now stop this. >> i don't think as much of anything it can do right now to stop this unraveling because this kind of disorder in the world is a consequence in my view of the way barack obama has conducted foreign-policy, trying to make the united states coequal with the united nations and some of our partners. you have to understand it every
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country in the world gets up in the morning in calculates what the to do relative to u.s. power . they calculate the u.s. power is on the shelf or at least in the background, there are to step forward like this, was the cause of lift the bar and it's really difficult. charles: and events like this better happening, quarter after five in the evening. cairo, protesters, you're watching the live, still on the scene at the u.s. embassy. we have to move on to other topics. thank you very much. dagen: could to see a. of course, another big event that will happen later this afternoon. the federal reserve will make its announcement on monetary policy had 1230 eastern time. then, of course, a big press conference at 215 eastern time. you can see the clock. are we excited? here to weigh in on what he thinks the federal reserve will do. four executive vice president with the atlanta federal reserve
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bank. what does he think? much expectation among some investors, among some fed watchers that the fed will step up to buy an additional treasury debt. the thing that happens and what work they did it? >> i'm skeptical that there will. they really have three options. they can engage in qe3 which everyone has been clamoring about. second, they can change the interest rate on the required reserves or they can't just rely on communications policy. i see them primarily rely on communications policy with some chance that there will lower the interest rate on excess reserves. they don't want to give up that last bit of ammunition that they have, which is to but think they're going to say that. in the case that something bad happens to the economy. dagen: right. in terms of the politics of an all, i keep bringing this up. we don't need to make everything
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about the presidential election, but having worked inside the federal reserve bank does the open market committee need to be careful about what they do that might even move the market in the short run given how close we are to a national election? >> they can't really ignore the politics. it tried to be apolitical and what they do and what they -- the decisions depend upon what they see in the economy and what the economy needs. in cases like this it's hard to ignore the fact we have an election coming up and they don't want to favor one side or another. that would tend to me to lead me to believe that they would not be inclined to do a qb three at this point because that would be essentially an effort to jack up the economy and particularly the import situation. one party versus another. dagen: it was great to start today. thank you for being here. we will hold our breath, but we
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will get excited to hear from the federal reserve. taking so much. states in the next hour. can you even recognize any of these people? it's an all-star panel. charles: we're all over. dagen: start to throw everybody in the building, the federal reserve decision this afternoon. charles: that will be next hours big story. coming from overseas as we continue to cover the breaking in developing situation in the middle east. live pictures outside the u.s. embassy in cairo. rebecca is more. woman 1: this isn't just another election. we're voting for...
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charles: breaking news coming from the middle east, as we continue to show you live pictures of the u.s. embassy in cairo, egypt. moments ago we were looking at these pictures. white smoke, more than you see now. the crowd there began to disperse. now it is back, and we will continue to monitor the situation.
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we have protests reported that our embassy in yemen after the killings earlier in the week in libya. fluid to the developing situation. right now you're looking at cairo, egypt. dagen: back here in new york city to my say so long to any soda pop that is more than 16 ounces. the new york city board of health has passed near bloomberg so-called so the ban. beginning in march of 2013 you will not deal to buy in a restaurant, delhi, movie theater, even at a sporting event or from the street vendor, any suite server larger than 16 ounces. of course, you can buy multiples of a smaller size, but big gulps argon. charles: a thing of the past. it. dagen: drink beer instead. charles: another could. dagen: advice. her temper today. the place where many people think it all started out silicon valley. a number two.
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liz claman is at a company in palo alto, california, hewlett-packard. >> you know what, does it surprise you that historians picked as the birthplace of silicon valley attorney rushed in palo alto about 12 feet by 8 feet? that is where bill and dave founded hewlett-packard. it is now a national historic register place. we got inside. take a look. fascinating. back then in 1938 when they founded the company rig was $45 a month. forty-five bucks a month. that was then. this is now. we are live at hewlett-packard lamps. an exclusive, behind the scenes look all the long. it is the world's largest pc company. going through major transition. apple has destabilized about everybody in the pc world.
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cells are shrinking, but hewlett-packard with new management, we're going to turn this around and make products you want by designing improperly . a fox business exclusive, with hewlett-packard, chief of design. nice to have you. we have a whole bunch of products. we know you're very excited about them, but the big question is always been lately hewlett-packard just is a sexy. what you have to say about that? works for doing a very good job of changing that belief. if you looked at the lineup we have here, were raking in huge transformation this year. obviously touches bake. across the line, but the designs the see coming out with another completely transforming that belief. dagen: the word tablet, a tablet cells worldwide up 98%. apple ipad. >> were perched in a couple of the for ways. we still believe the pc is strong, and we believe that we can do something that is a mix
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between tablet and pc. research over the past year, as we have been looking at this category, really resonating quite big. or we have this product that can transform. >> show me your favorite products and that rome. >> this is the end dx2. it's a remarkable machine. >> touch screen. and we have you can immediately get everything through touch. >> yeah the ability to touch the screen in navvy like a pc, so it's the best of both worlds. what's unique about this product is what i want to be a tablet, sit back and recline in inshore would be might be there. it could be fox business news. i can quickly slide the latch and disengage it. we spent a number of hours this year to zero weeks and months engineering that tablet portion of this and help it talks with the system. if you look closely, we
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reengineered the complete answer on this. why were using a special magnets and the locking mechanism. all you need to do -- >> and this past that does not have to do this stuff. >> line it up, pushed down. >> in just go like that. >> go ahead. >> if i can do that anyone can. that's pretty incredible. >> as simple as that. it's now in place. what's really nice about this is you close it to much as like a beautiful boat. lookout tiny that hinges. we spent a number of hours engineering at peace to make sure it's as fine-tuned as a jeweler would. >> let's look. an altar book, over here. it's a bigger pc. obviously this is where the brains. this is where all of the components are. >> correct. >> did you have this.
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>> with less about this, all the technology is in the arm so that we can basically pull all that away and really it easier how the clinton team -- then the plane. you actually incorporate nfc, near full communications. i can take my cellphone and put there. this is all navigated also by a large touch pad. >> as we finish up, can you be apple and some of these products? >> i think so. we have some compelling things. a product of when you talk to students, it really resonates and gives them the best of both worlds. >> chief of design here at hewlett-packard. we're wishing you a good luck. it made all over the place. it's a fascinating picture. by the way, breaking news. before we go, coming up, we take you in a very rare behind-the-scenes look to their assembly line and talk about how this u.s.-born on the company is growing exponentially. back to you in the studio.
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dagen: breaking news at of the middle east. let's first take a look at the live pictures. you can see the unrest in the streets. the "wall street journal" reporting right now in libya, for people of bin rights -- arrest in connection with the attack against the american consulate there resulted in the death of the u.s. ambassador to libya and three other americans. four people have been arrested. libyan security forces have a larger group of people under surveillance. officials still in the wall street journal. there is a multi agency task force that has been organized combining all available resources in that country. four arrests made. we will follow this breaking news for you as it develops. this all relates to, in terms of money in business and the economy, the price of oil and the increasing unrest in the middle east.
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the former president of shell oil joining us now from phoenix. what do you make of this? we take a look how wireless trading today, it is under $98 a barrel. do you think that this price needs to be significantly higher , the increased risk and the critical region of the world >> i don't in the short or medium term believe that this happen. although every day, every day we could be subject to some ball tonight, some kind of a murderous attack some kind of a demonstration. the larger issue, the reason is should go much higher, the economy is weak. china is not growing very rapidly. europe is in recession. so there's no reason to be pushing oil prices up because is play well on the market to meet his demands, even with this
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level of volatility. what is unknown is what happens with israel and in relation to the united states, that could precipitate a much bigger crisis of serious proportions which could affect the low supply very quickly and dramatically. we have to be mindful of that in the backdrop. let's be clear, the real issue that we're not dealing with with all this volatility erebus is overdoing in the united states of america to build up our own energy supply system regardless of a story on the middle east. we're not seeing anything in this regard. dagen: we have had a great deal of production or about in the northern part of the united states, in the oil in particular with canada. we have seen incredible strides being made by the private sector, by these companies because the resources are there and they are tapping that.
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why isn't that a good sign? why are we headed in the right direction on that note? >> it's marginally improving the situation. emphasis on the world marginal. we've gone from 500 barrels a day for years ago to 6 million barrels a day in the u.s. economy that needs 18 million barrels a day. so yes its improvement, but it is nowhere near this care of improvement that would be needed in order to take care of the volatility in the middle east. there is no federal. there is no federal in the country that is so intensively covered by the federal government in an industry that can hardly move on federal lands or offshore. in fact, it can't move on federal lands or offshore weather is so much more whale without federal. dagen: this has been a problem
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for years in the making. there has not been any on energy and a broadway says the early 70's, since the your lombardo. >> absolutely right. everybody going back to us richard nixon right up to barack obama. what's different now, and this affects our economy every day, the price has never been this high on a sustained basis. we've never seen the orioles so close to triple digits for so long. that affects every american's pocketbook. number two, the middle east is every bit more precarious than i have suggested it has ever been in our history, even going back to the arab embargo. iran is about to become nuclear. we have the issues of the arab spring, which we've never had before. the u.s. is weaker in the region that it has ever been, and there
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are no prospects for a to get better. underlying everything in the middle east is a growing population a very impoverished, fundamentalist leaders who are and aesthetical to everything even states stands for. they want to hurt us. that hurt is just going to be very painful. dagen: good to see you. thank you for being here. we're reminded yesterday of the attacks, clearly, that people want to hurt the u.s. hurt the attacks. the 11th anniversary of the 9/11 attacks. connell: let's go back to the pictures of cairo. these are live pictures of the protesters gathered this evening. it is just after 5:30 p.m. and cairo. this week is the killing of u.s.
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ambassador in libya. this is obviously happening in a presidential campaign. why don't we just outline some of the criticism and ask for your response that mitt romney has had. at the very least, he spoke to soon. before all the facts were out there and maybe he hurt himself politically and it was inappropriate. >> i don't think so at all. it is led with confusion and chaos. our friends in the region are concerned we will not be there to support them. our enemies see weakness and they take it upon themselves to take advantage of that circumstance. in my view, you know, mitt romney may have been criticized,
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but he was criticized unfairly. he needs to -- i think that is essentially what has gone on. connell: in what way? and this will be the case that governor romney will have to make at that debate. it will be exclusively about foreign policy. we hear over and over about how president obama apologized for america. people went back and checked. the only specific apology may have been after the koran burnings. in which way, how is the administration specifically fallen short? >> after investing a trillion dollar in american lives, president obama went to the middle east and said he wanted a new start.
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whatever happened in the previous administration was no and void. to play a role as a peacekeeper, as a nation builder, whether you agree with it or not. he went there and said the race the past and let me restart the conversation. that conversation has lacked clarity. it has lacked what our friends and allies need when the going gets rough. yesterday, president obama was ultimately politicizing the conversation when he took a shot at romney. in a sense, barack obama was launched into the national limelight by questioning president bush in his surge and policies in iraq and afghanistan. policies that led to success.
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connell: presidential politics are right in the middle of all of this. terry holt, thank you, as always before we continue to bring you the latest news out of egypt, libya, across the middle east. connell: it is a completely different situation, but other breaking news, baseball and business. charlie gasparino recording the owners of the red sox quietly shocking the team. we will have details coming up in just a moment. ♪ want to try to crack it? yeah, that's the way to do it!
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i love you grandpa! i love you grandma! now you're a real fishman. [ male announcer ] humana. >> i am lori rothman with your fox business brief. jobs claims hit their highest level. topping the 375. owning a home may be a better option than renting one. home ownership was the better option. this mortgage rate covering near record lows and rent climbing
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higher than home prices. the boston red sox are to be up for sale. charlie gasparino reporting that the owners are quietly shopping for potential buyers. price tag, $1.3 billion. that is the latest from the fox business network. giving you the power to prosper. ♪
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connell: and a lot of people excited, of course, about the new iphone. our next guest says expect a surge in downloads for his app. david lee is here now.
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if new phone comes out, whether it is this one or the old one, obviously, more downloads. >> we see two spikes and download each year. one is the holidays and the other is the new iphone. connell: how are things going? 100 million downloads, that is huge. what is the financial model. >> what we are focused on right now is making great products. things are going really well. we are super happy with bump. we just recently watched a new app called flock. you never have to go and not your friends to get a photo. connell: it is advertised base? >> we are not monetizing at all right now. we are purely focused on doing great products.
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we are trying to build something that is really meaningful. the best thing for us to achieve that mission is to focus on building great .x. connell: at some point you have to make a few bucks? >> absolutely. it is a decision of when we want to start doing that. do we want to put our resources into making the product better or to making a deal bucks? connell: give us a quick take on the iphone five. is it everything you thought it would be? >> it is pretty much what everyone expected. i do not want to downplay that. it is a fantastic device. i think arguably it is the best consumer product created. apple has done it again.
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they have come out and showed they have a 50,000 person organization that is passionate about their craftsmanship. that is something you do not see that often these days. connell: argue on other platforms? android and things? >> we are. connell: i was just making sure when you are pumping up apple, it wasn't just them getting your business. thank you. >> thank you. dagen: it is quarter till. stocks don't. nicole: we are waiting on the fed to hear what the committee has tuesday. write back you can take a look at the movers right here. new colored ipods. the new iphone.
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nike pulling back after a downgrade from citigroup. coca-cola the best performer on the dow while microsoft is pulling back at this time. connell: thank you, nicole. more on that breaking news that we brought you at the top of the hour. the owners of the boston red sox have started quietly shopping the team. charlie gasparino broke this, in case you missed it. some of his report. charlie: here is what we know, the boston red sox management is quietly shopping their franchise. they have had a few turnover discussions about selling the boston red sox. they have talked to at least one
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potential sale with a price tag of $1.3 billion. this does not mean they will do it. we do know they are quietly shopping. the fenway group which owns the red sox is run by several people basically saying it is very hard to own the boston red sox and own the liverpool soccer team which takes a lot of capital to keep going. he also owns a commodity firm. his commodities firm right now is not doing very well. there is a lot of financial pressure. we understand that they are talking to potential suitors. these are very early stage discussions. i am not saying it will happen. we should also point out that the boston red sox denied that
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they are doing this. they have publicly denied it, i believe they publicly denied it today. i do know that internal they are talking about it. connell: exclusive reporting from charlie gasparino good more to come on the possible sale of the boston red sox. from here to new york city, one of the big stories today is the mayor. mayor bloomberg's ban on sugary sodas. dagen: some of today's winners on the nasdaq. ♪
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dagen: we want to bring you this news alert. the new york city board of health has passed mayor bloomberg's ban on sugary drinks larger than 16 ounces. >> a lot of residents say there are a lot more important things they should be focused on. it has happened anyway. here is the boat. >> all in favor of bruising --
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all in favor of approving. >> after restricting smoking in bars and turning car lanes into bike lanes, the mayor has decided that people are still too fat. this includes fast food restaurants, movie theaters and stadiums all from selling drinks larger than 16 ounces. >> if you are still hungry or thirsty, go ahead and buy another one. it is not a restriction or band on our choice. >> the city did hold a public hearing.
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business owners and beverage industries argue that the proposal simply was not fair, that it singled them out. the board has been appointed by the mayor. >> indication that getting these beverages across the city won't do anything, but there is a lot of indication that it will cause a lot of problems both for individuals who want the choice and the businesses. >> this resolution has passed. it is expected to take effect next march. the beverage industry says it may sue. dagen: rick, thank you so much for that. in the meantime, be aware of all the potholes that can snap your leg in half. focus on the soda pop and not the stuff that, well, matters.
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connell: gas prices have been climbing this week. at their slowest pace in at least two months. maybe, finally, we have seen them peak. dagen: sandra smith has more in today's trade. phil: the toxic fumes coming out of them that i try to dodge every day. everyone has been asking me what is the deal with crude and gasoline going in opposite directions. your wholesale gasoline prices, which are cheaper than the gas at the pump, three dollars a gallon. they are down a 4% on the day. put castling up against crude. our gasoline prices have been rising faster than crude. whether it is three months or if
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i even go back further, you will see that gasoline prices are outperforming the price of crude oil. we may finally see gasoline prices topping out or peaking at these current levels. if you are in the camp of bank, you will go back to the june loss of $77 per barrel. connell: thank you. the trade. sandra smith. dagen: dennis and cheryl are next. connell: peter barnes will have all the coverage on the treasury about what the fed will be doing. lou dobbs second from the left. they are all coming up. fox business. don't go away. ♪ so... [ gasps ]
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dennis: i am dennis kneale. cheryl: i am cheryl casone. it is a countdown to the fed decision. less than 30 minutes away. dennis: for the first time in a long time, many are betting bernanke and company will be making a strong move. peter barnes will have that. cheryl: we have equity analyst at s&p here in new york. we have money manager mr. blumenthal here. we also have felt played at the cme. we begin with nicole petallides at the new york stock exchange. nicole: a lot of the traders have talked about the wait and see.
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we are waiting to see what they will deliver to us in this hour. right now the dow jones industrial average is up. i want to take a look at the banks. sometimes they can be a good indicator as to what to watch. these are all the things we will continue to watch throughout the hour. here is how they are faring at this time. the ten year bond 1.71%. dennis: let's check in with bill flynn at the cme. >> that is a big move by the federal reserve. i have been standing here right now in the libor picked. they have been coming in on the 2005 euro dollar options. they have been betting that the said is not going to extend the time period of keeping interest
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rates low. right now the market basically pricing and a similar time when rates will go in november of 2014. that is for the october meeting. we will see rates go up a quarter at that time. there is a lot of nervousness here. a lot of traders that i have been talking to feel that the big news is priced in. they are very fearful that they have been burned by bernanke in the past. there are some traders here saying that the reason we are pulling back is that the markets should not underestimate the warnings by bernanke and they are making a mistake and they could have a huge reaction after this report. we will see what happens right. cheryl: if you look at a reasonable 34 out of 37 economists believe he will pull
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the trigger on bond buying today. sam, you are the one voice that says not so fast. >> that is right. i think there is a possibility that the fed may say things are going fairly smoothly over in europe. we have seen that yield on the ten year note a little higher. maybe the fed does not feel as if they need to do it today. they have shown in the past that they can change policy in october or wait until the end of the year until we fall off the fiscal cliff. dennis: you feel as if bernanke has no choice to go to qe3 or something big. >> i think he has painted himself in the quarter. the fed minutes second and august 301 jackson hole statement did two things. it was really a heavy defense. that was softening. then he put out this great concern about the labor market.
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the unemployment report recently really gave more ammo that he has to do this or else his whole credibility that he has been working on will be shot. cheryl: scott martin, the markets have been operating recently on that transparency. they have been expecting a new round of bond purchases. we will get about 27 minutes from now. what do you mean by that? >> look, cheryl, bernanke is serving all the drinks as he camp like it is going out of style. he has totally painted himself into a picture. the economic data is still not good enough. yes, he has to keep beating this market with liquidity. mario draghi statements were very big.
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i don't see the fed stepping away at all. dennis: sam, it seems like stocks could be in a big tumble. you feel like we will stick with it because stocks are headed higher overall anyway? >> i think they are headed higher through the end of the year. but on rumor, sell on fact. if the fed does do what everyone says, the thought is what do i have to look forward to. if i do not do what everyone or a majority is hoping for, they will be disappointed. i think we are to for some sort of attempted profit taking digestion of rethink gains, but our belief is still that the fed wants to make sure we can do as much as he camp before we fall off the fiscal cliff and i think people are expecting a third quarter trough. dagen: nicole, i want to give
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you the final word. today's data, in particular, inflation data, much higher than expected. nicole: that really was much higher than expected. that was not anticipated. the one thing we continue to watch is the jobless claims. they have been a disappointment. some good, some bad. it is hard to make a case. cheryl: this all-star panel, everybody, will be with us this entire hour. dennis: we are 24 minutes away from the feds latest move on the economy. lou dobbs and gerri willis will join us later in the show to tell us what they think and what they would ask chief bernanke at that press conference following the announcement. cheryl: we are looking right now at live pictures, protests, riots, are spreading across the
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middle east. we will have up-to-the-minute coverage ahead. first, as we do every day at this time, let's take a look at oil. the markets are getting very jittery. ♪
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dennis: we are less than 20 in its away from the big fed decision. we have reaction from our all-star panel coming up. cheryl: we want to bring you details of the other top stories we are following right now. there is rage against united states. you are looking at the latest pictures. they are coming in live in cairo , egypt. we have team coverage for you. rich edson standing by in washington. first, let's go to greg in london. >> arrests have been made. the terror manhunt is just beginning regarding the killing of a u.s. ambassador killing, chris stevens. a libyan official said four arrests have been made. we have no confirmation of this.
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al qaeda militants linked to al qaeda. fbi teams, we are told, will arrive shortly. drones surveillance that to be stepping up. a destroyer already there. another destroyer set to come. the bodies on their way back to the states. three other americans injured are being treated. more u.s. embassies being attacked. today the u.s. embassy in sanaa, yemen being attacked. a couple hundred managed to scale the perimeter walls and knocked down the main gate. torch cars, break windows and steel equipment. security forces came in there and beat the people back. i am told, most of the u.s.
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staffers have left. a third day of protests and cairo. a police cordon keeping them away. nothing like the scenes we saw on tuesday. 9/11 anniversary and a whole bunch of other stuff. back to you. dennis: let's go to rich edson fort reaction inside the beltway. rich: there are still specific questions. officials are trying to insert the safety of u.s. embassy staff around the region. hillary clinton says the u.s. is closely watching protests in yemen and elsewhere. the united states rejects the content and message of the video blamed for starting these protests. >> there is no justification. none at all for responding to
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this video with violence. we condemn the violence that has resulted in the strongest terms and we greatly appreciate that many muslims in the united states and around the world has spoken out on this issue. rich: there is early evidence showing the benghazi attack, the one that killed four americans, was not a protest, rather a pre-meditated attack. back to you. dennis: thank you. cheryl: charlie gasparino first reported in the last hour, the owners of the boston red sox have began quietly shopping the team. gasparino reporting the price tag in the neighborhood of $1.3 billion. the management wants to focus on their ownership of the liverpool soccer club.
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dennis: we are on fed watch. there is 16 minutes to go. bernanke and companies latest take on the economy. keep it here for the best coverage. cheryl: has begun to break, here is how the world currencies are faring against the u.s. dollar. you'll want to keep your eye on that as the fed decision comes in. ♪
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cheryl: we are moments away from one of the biggest fed decisions and reset memory. we have 11 minutes to go. many police we will get major action from the fed. dennis: and our all-star panel is back. the three measures that the fed could do. they could do twist. they could spend extra money, rent extra money. which will they do today? >> qe3. the size of that is to be determined. i think it will be on the smaller side. i do not think bernanke has his heart in this.
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i do think that they will extend the language because it is a low-cost, almost a no cost of using. they can extend that if they want to. they can keep rates low until late 2014, i think they will pick it into 2015. they have a few tools left, but i think they will stop there. cheryl: i want to take this to scott margin. we bought 1.2 trillion mortgage back securities. 9 million treasury debt. has any of that worked? >> well, it depends. as the market liked it? have asset prices liked it? absolutely. as the economy done anything because of it unless i think that is the $64,000 question. has it created jobs? has it boosted the economy? my opinion, no. if it did, we would not be at
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qe3. we do not have the growth to get out of this situation. dennis: sam, the fraidy cats have been wearing that qe1, qe3, we are destroying our long-term basis. possibly we did have some benefit of qe1, qe2. when you go back over the last couple months, it is a very nice advance coming off a near their market. also, what you find is since world war ii whenever we have had a year over year increase in real gdp of 2% or less, we have eventually slipped into recession. this is the only time that has not happened.
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maybe what we are missing is what would have happened if we had not engaged in qe1, qe2, double twist, etc. maybe we would have fallen back into recession. cheryl: i am not so sure we can ignore all of what has been done to the dollar. you have the mess in the euro zone. the euro today at $1.29. what about the dollar? are we losing track of the ball here with monetary policy? >> there are still people within the fed that deny that quantitative easing has any impact on commodity prices. some of the greatest economist of the world say it does not impact commodity prices. traders say something completely different. a lot of traitors down here are very unhelpful. we are seeing gold and silver go
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down. some people are hoping for the nuclear option. that is qt with no limits. dennis: nicole, just take a wild guess. how far do stocks fall if bernanke does not do something big today? nicole: i am not going to guess. a lot of traders that i have been speaking with expect the language to change more so than see anything dramatic at this time. they do not expect too much. i would watch gold very closely. what we talked last, gold was up nearly two dollars, now it is down five dollars. dennis: do not go anywhere, folks, more of our all-star panel coming up. cheryl: and we will bring in our big guns. we will be bringing in lou dobbs and gerri willis. first, as we go to break, take a
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look at some of today's s&p winners and losers. we are just moments away from the fed's decision. ♪ [ male announcer ] if you believe the mayan calendar, on december 21st polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans?
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cheryl: decision from the federal reserve is imminent. peter barnes will have the first on that decision. >> a few quick questions that peter schiff joins us, and james lebenthol in studio and scott martin. let's start with you. let's bring in phil flynn.
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cheryl: we are so close. nicole petallides and phil flynn standing by at the pits of the exchange. how are you feeling? we are two minutes away. >> we saw gold and silver back off. still a lot of traders hoping that the fed will do something big. not only qe2 or qe 3 by q e. 3 without limits. similar to what mario draghi said we are going to be buying and whenever we feel ready that may assume they won't come out with a number and put the fear of god into anyone who wants to be a bond vigilante. if that happens we will see commodities explode. cheryl: nicole petallides at stock exchange. nicole: i am feeling some anticipation on the stock exchange looking at the big board getting a gauge of where we are and volume picking up so a little more selling here in the last couple minutes. down volume and the volume.
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dennis: peter schiff with us. please remember we have a cut off when we hear the fed news but you are saying if it doesn't ease you say the fed should not ease. >> absolutely. the recession is what we need to rebalance and restructure the economy. the fed is preventing the market doing that and that is why we will have her -- never have a recovery as long as this. we are all anticipating ben bernanke to come out to save the economy and coming down from mt. sinai to keep interest rates at zero for how much longer and how much print he is going to buy. that is not a real economy. this is a huge bubble and paul ben bernanke is doing is thinking about politics because it is all political. trying to delay the day of reckoning. he doesn't care how much damage
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he inflicts on the economy. the more he takes interest rates down the bigger the -- that is why we are not recovering. look at the data. household income falling more during the recovery than during the recession. how can this be a recovery? is not a recovery. it is a depression and it will continue to be a depression until the fed gets out of the way. we are going to get more gasoline on the fire today most likely and it will ignite the gold market, commodities, watch the foreign-exchange market. the gold market and maybe we will get a sell-off in bonds if the fed announces open-ended q e 3. maybe bond traders realized the worst thing for the bond market is it buys more. cheryl: i want to give our viewers attention to the clock. the fed decision to come and peter barnes will bring us that decision. he will be on the telephone from
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the treasury and we are waiting for that at any moment. as we await this decision from the fed peter made some great points. the weakening of the dollar. inflation in oil and gold and all these things peter is saying. this is not working. >> i understand what peter is saying. we need to look further than one month behind and one month ahead and you realize it is a global economy. not just the u.s. economy stuck in neutral. we are not sure what is going on. i would say any comparative currency moves -- >> a new bond buying program. q e 3. an open-ended program of $40 billion a month in mortgage backed securities to push market rates lower. the fed also extend the period of exceptionally low rates to mid 2015 from 2014 now and keep them low even if the economy
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strengthens. it is also continuing current operations twist. the fed statement starts with economic outlook. information received in federal open market committee met in august suggests economic activity has continued to expand at a moderate pace in recent months. employment has been slow and the unemployment remains elevated. household spending continues to advance. the housing sector has shown further signs of improvement from a depressed level. inflation is subdued though the price of commodities increased recently. long-term expectations remain stable. the committee is concerned that without further policy accommodation economic growth might not be strong enough to generate sustained improvement in labor market conditions. strains in global market financial downside risks to the economic outlook. this report on stronger economic
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recovery increase policy accommodation with conditional agency mortgage-backed securities at a pace of $40 billion per month. the committee will also continue through the end of the year a program to extend average maturity in june ended is maintaining existing policy of investing fiscal payments and agency mortgage-backed securities and mortgage-backed security. these actions which together will increase the committee's holdings of longer-term securities by $85 billion each month through the end of the year should put downward pressure on long-term rates in for straits and support mortgage markets and make a broader financial conditions more accommodative. the economy will monitor incoming information and economic and financial developments in coming months. if outlook for the labor market does not improve substantially the committee will continue purchases of agency mortgage-backed security and undertake additional asset purchases and employ other policy tools to a program until
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such improvement is achieved in the context of price stability. support continued progress for unemployment and price stability the committee expects accommodative stance on monetary policy will remain appropriate for a considerable time after the economic recovery strengthens. in particular the committee also decided to keep target rates for federal funds at 1/4 present and anticipated exceptionally low levels for the federal funds rate likely to be warranted through 2015. the fomc voting without policy, the president of the federal reserve once again. cheryl: let's get instant reaction from the markets. nicole petallides and phil flynn standing by. the dow took a major hit to the upside. a big jump for the dow as that statement was being read.
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nicole: exciting to watch the dow moves so dramatically. looks as high as 13-4. those are the highest level we have seen since 2007 setting record for the dow jones industrial average. bold is flying and taking off. obviously we have a highly accommodative fed ready with bond buying and also extending that language into 2015. look at the traders. cheryl: that was one of the big highlight. looking at the euro versus the dollar the euro is gaining against the dollar at this hour. phil: that is pretty new booking and everything else. looking at silver silver is up $1 after this announcement. goal is not up as much. it is a $15. they say 2015 on yield rates. might as well -- that is how the market is reacting. they are going nuts over there.
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we're seeing a flip-flop. the fed future rising further down the curve while outlining across the board. the nuclear option some traders thought could happen has happened and they exploded now. dennis: let's bring in senior adviser with american enterprise institute. looks like we have three for the fed action on extending low rates and act on operations twist and spend $350 billion more on quantitative easing. >> really aggressive action. they act on quantitative easing and extending the language but they went all in on both scores. i say on forward guidance what is new here is they added the language indicating policy would remain highly accommodative even as the recovery progresses which
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means they are trying to signal after the first rate hike the rate hikes after that are going to come slowly. cheryl: i want to bring in scott martin to talk about market reactions because obviously we are pulling back a little bit and the 74 points. we are back down to 30 points. is the market getting what it wanted and something in the statement they are saying they don't like? talk to me. >> the market got exactly what it wanted. this is incredible. gold and commodities have gone not so you see people piloting the trade but talk about something the fed said which is key mortgage rates low. why do mortgage rates need help staying low? they can't just take the rates down and say everything is ok because rates are not high. that is not good. long-term extension of operations twist is not a good
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idea. the bank model borrow short and lend long is getting crushed. is so flat you can't even see it. by the time it starts going up my daughter might be graduating high school and she is 2 years old. dennis: you must be horrified. >> not the gold market that is going nuts but the fed. this is an operation twist. it is operation screw. if you don't want to be twisting in the wind you better by some of the goal before it gets more expensive. this maybe is the final nail in the coffin for the u.s. dollar and the u.s. economy. the fed is living in a fantasy land of the things more printed money is what we need to revive the economy. we need to revive the economy to cage up the fed. interest rates have to go up. mortgage rate the too low. they have to rise. if we keep printing money and artificially expressing u.s. interest rates we will destroy what is left of the economy. listen to what the fed is doing and look at the markets and look
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at the bond market. the bond market is down. treasury yields are higher despite that the fed is going to print this money to buy bonds. traders are selling into and that is the right thing to do because the worst thing for the bond market is for the fed to buy bonds and create money out of thin air which means bonds are less valuable and inflation out of control and up 1.7%. [talking over each other] cheryl: one of the things mr. bernie -- ben bernanke said was bond buying could help unemployment. we are at 8.1%. the employment picture is in a very bad direction. anything that the fed did, does that help the unemployment picture? >> not directly. trying to pump as much liquidity into the market as possible. let's try to do what we did or
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not do in the 1930s or what japan did not do in the 1990s. let's try not to make the same mistakes. maybe we will make new ones but the feeling is that the fed is going to cushion the blow that the economy will likely experience when congress does not get together and avoid falling off a fiscal cleft. is building up before we call laudable window. dennis: some people said half a trillion we needed. it is at most $350 billion after that. that is not enough? >> i interpreted it differently. i saw this as open-ended which leaves nothing in the bag. what ben bernanke has done is say i am giving you everything i got annexing stage right and focus on what the real problem is. the fiscal cliff that we are three months away from him barking over the edge of. stop focusing on me.
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[talking over each other] cheryl: is this a style of decision we are getting from the fed that we haven't seen before? >> the fed was trying to give everything it could by making the program open ended they have done that. it could be $300 billion or $600 billion for a trillion dollars. it is up to the fed and how it interprets how the economy is progressing next year. dennis: did you expected to be open ended? >> that surprised me. almost like ben bernanke called mario draghi and said just go open ended and we will be good. this whole global coordinated effort and you are starting to see these guys stepped to the same page which is good for equity markets and asset prices and long-term consequences of this could be dire because we
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don't have real economic growth supporting it. cheryl: more market reaction. nicole petallides and phil flynn. we are seeing a see-saw with the markets right now. >> reporter: marks several times. now looks like more uncertainty to me. nicole: first thing i think of with long term is these markets are so short term reacting but when you see a complete change over the last week 10 minutes we are seeing the up volume outpacing down volume and up arrows across the board weather is retailers or banks. these are short-term reactions you're getting from this accommodative fed. the other thing is the fear index which had an up arrow pulling back some. right here right now the markets -- we are up triple digits. up 100 points.
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[talking over each other] >> why would gold the up if the fed has an open-ended commitment for it $35 billion in -- >> every cycle, stilly dependency. you want to buy silver and that is the mentality. we are seeing all this volatility and there is confusion. is it open ended. one thing i do know is sending a message to bond vigilantes' in front of the fed you will not know. this might not have a regular schedule. they may hit the market at any time. that is another a thing you have to be careful of. we have to find out more when they have the speech how they will implement this. if there is no limit but gold and silver is higher than it is. [talking over each other]
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cheryl: listen to this. $40 billion per month. this is something we have never seen before. talking about the bond markets. >> bonds getting clobbered. qe 3 is a failure before it is even launched. the fed is falling and they don't care. they're selling bonds. they're selling the dollar. this is a vote of no-confidence in the fed. the only job we will creator prospectors looking for gold because that is what everybody has to hold because no one wants to own dollars and no one is going to want to own treasury or any bond denominated dollars because the fed will destroy the currency. it won't revive the economy but it will destroy the currency which will destroy the economy in the process. dennis: people say qe2 didn't work will qe 3 work? >> it is often with good start with the equity markets but questionable in the bond market. as peter brought out may be the
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expectation is we could see an increase in inflationary expectations and that is possibly wide bond prices are coming down. as a result investors will put my money out of bonds. where will i look for better alternative? that could end up supporting equity prices in the near term. dennis: thanks to our entire all-star panel. a great job. appreciate your time and your insight. cheryl: phil flynn and peter schiff and nicole petallides, we really appreciate your time. coming up, big guys coming in the hallway and lou dobbs and gerri willis joining us now with their take. dennis: on the fed decision and we will hear what they would ask ben bernanke at his news conference coming up in an hour-and-a-half.
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cheryl: we are joined by the big guns that fox business, lou dobbs and gerri willis on search and phil flynn at the cme and nicole petallides on the floor of the stock exchange. facing the news media two hours from now. really has to address the extended purchase. >> one question he will not have asked of him is couldn't you
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have done more? he has simply rolled up all of the weaponry and here we go. there is nothing more he could have done to drive these markets. the fact is he has taken the opportunity to support the housing market, mortgage-backed security purchase program. in my opinion says we are here and we are going to stay here. if there is a weakness in the house and market it is not because we do not support the housing industry. he has to deal with the yield curve. i am not hearing anything about the experts through the day. they had to attacked this yield curve which is steepening for months. what we are watching in an initial reaction is rising rates but we are also seeing the yield
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curve decline. we are looking at between the two year and ten year 1.5 basis points and the 30 year just about 104 basis points. it is extraordinary the action they have taken. when you get through the clatter of the apologists and rationalist this chairman has taken bold, brave action absolutely necessary for this economy. gerri: i disagree entirely. i don't think this is necessary and essential at this point. what is going on is this economy needs to turn on its own. i don't think lowering mortgage rates is going to pick the housing market. we have a floor under the housing market with rates full of 4% at 3.5 or a thirty year fixed. that is not needed right now. we need washington to get its act together. the fed increase jobs by two
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million with its actions to date. that is not enough. what the fed is doing is more of the same. cheryl: we got a fix in the markets. you got the market's getting what they wanted. scott martin was saying we will see in a couple of hours there will be hanover. >> we talk about markets being knee-jerk reaction and short-term base and for the moment they get everything they want on a silver platter and we use that phrase -- today everyone is ready to take the risk. they are buying everything. all the dow components with the exception of boeing facing intense competition but other than that every single name on the dow, we saw gold up $20 coming off of the highs in the market but the dow went as high as 13,445. breaking out at least for the
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moment. cheryl: what else is happening on your end? >> a very good point. if you look at the short end of the curve, away at their moving on these eurodollars we see the bigger mover. a bigger percentage than in relation to the long end of the curve. they are reacting to what the fed said about keeping rates low to 2002 pushing it out to 2006 and holding it through the entire day but that is where a lot of the movement is. a lot of traders right now wants to find out if this -- if it is we get more details from the speech today. we will see a very explosive commodity market. what is amazing when we talk about open-ended q e and the nuclear option and doubling down on the chubby checker strategy and it is actually hanging in.
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the dollar figure out what happened and the rest of a market trying to figure it out. cheryl: it begs the question. was any of this politically motivated? ben bernanke has a job to protect and mitt romney said he would not keep him around and he is up in two years. >> ben bernanke has lots of employment options. he is not being motivated in this decision or his previous decisions politically. that is claptrap. it is cold sometimes on the streets. the fact is history will demonstrate clearly that ben bernanke after great courage despite the hypocrite's saying we can't take anymore loose monetary policy, he has a dual mandate as well as stability, he is doing exactly what he has to do and those arguing against him
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would be among the first to be shrinking the if he had not been taking these actions to push quantitative easing. cheryl: basically inflation like we have never seen before. that will be a big problem going forward. i agree with you i don't think ben bernanke is trying to get a job. he is trying to protect what he has done here and his reputation. dennis: which do you have a worse effect on lack of recovery? the fed or washington policy? gerri: washington. inflation. lou: we have not seen any steps taken by this administration or fiscal policy that makes any sense whatsoever but for this nation ben bernanke is only in charge of monetary policy. cheryl: that is what is being missed. the fact that -- gas prices --
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[talking over each other] lou: 0.2%. we understand what is happening as a result of higher energy prices but the reality is this. this economy right now has to be supported monetary policy. has to be -- ben bernanke deserves our appreciation and complements rather than these to me hypocritical criticisms from folks who would be among the first to say oh my god he is strangling his economy. gerri: i am not being hypocritical saying it would be a problem for the american public if interest rates go through the roof. people who feel that first are living paycheck to paycheck. lou: this fed just assured us we are looking at lower rates until 2015. gerri: thank you so much. gerri willis and lou dobbs. we will see you tonight on the fox business network. dennis: lori rothman and melissa frances have more on the attacks
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on our embassies and consulates in the middle east and may be time to rethink the billions of dollars of aid that the u.s. sends over there. cheryl: lots on the fed decision as we wait for a fed chief ben bernanke's news conference just over an hour from now. tdd#: 1-800-345-2550 wh i'm trading, i'm totally focused.
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Markets Now
FOX Business September 13, 2012 11:00am-1:00pm EDT

News/Business. Business news. New.

TOPIC FREQUENCY Boston 16, Cairo 11, Libya 9, Liverpool 7, Phil Flynn 6, Charlie Gasparino 6, Egypt 6, Lou Dobbs 6, Gerri Willis 5, Yemen 5, Barack Obama 5, Peter Barnes 4, Scott Martin 4, Washington 4, New York 4, New York City 3, Lifelock 3, China 3, Bernanke 3, Mario Draghi 3
Network FOX Business
Duration 02:00:00
Scanned in San Francisco, CA, USA
Source Comcast Cable
Tuner Virtual Ch. 130 (Fox Business)
Video Codec mpeg2video
Audio Cocec ac3
Pixel width 704
Pixel height 480
Sponsor Internet Archive
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